Dynamic Capabilities in Organizational Transformation for E-Government Development in Integrated Public Service Delivery: Evidence from the Public Service Mall of Maros Regency, Indonesia

Abstract

Organizational transformation is essential for the successful development of e-government because public organizations must continuously adapt to technological change and evolving citizen expectations. This study examines how dynamic capabilities support organizational transformation in e-government development at the Public Service Mall (Mall Pelayanan Publik) of Maros Regency, Indonesia. Drawing on Teece’s Dynamic Capabilities Framework, the research explores how the organization develops sensing, seizing, and reconfiguring capabilities to improve integrated public service delivery. A qualitative case study approach was employed using in-depth interviews, participant observation, and document analysis involving key stakeholders responsible for managing the Public Service Mall. The data were analyzed thematically based on the Dynamic Capabilities Framework to identify organizational transformation processes. The findings reveal that sensing capabilities are reflected in the identification of public service needs and the implementation of the Electronic-Based Government System, although these efforts remain largely policy driven and are not yet supported by comprehensive assessments of citizens’ digital literacy. Seizing capabilities are demonstrated through the implementation of electronic public services, WhatsApp-based information and queue management systems, and assisted Online Single Submission services. Reconfiguring capabilities are evident in cross-agency service integration, the transformation of employees into digital service facilitators, and the adoption of a hybrid service delivery model combining face-to-face, self-service digital, and assisted digital services. The interaction of these three capabilities generates organizational adaptability, enabling continuous adjustments to organizational structures, service processes, and institutional practices. This study proposes a conceptual model positioning organizational adaptability as the key mechanism linking dynamic capabilities to successful e-government transformation. The findings extend Dynamic Capabilities Theory within the public sector and provide practical insights for strengthening digital transformation strategies in local government institutions.